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Income Strategy Update: Sifting Global Change for Investment Opportunities

By Advisor Perspectives
Wealth Management

SUMMARY

  • With PIMCO’s Secular Outlook as a guidepost, we are taking a more cautious and defensive approach in the Income Strategy while remaining poised to take advantage of market overshoots.
  • We are maximizing the strategy’s flexibility, which includes increasing liquidity and diversification; unless we see a meaningful shift in market valuations, we plan to continue using diversification to temper volatility.
  • Our short-term view on the economy is constructive, and we therefore expect the Federal Reserve to continue gradually raising interest rates. As a result, we are taking a cautious approach to interest rate exposure.
  • The Income Strategy has the tools to be resilient in the face of rising interest rates, including broad flexibility to manage interest rate exposure and to allocate across sectors that may have less sensitivity to rates.

Read more at Advisor Perspectives.

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